Subject: Actual Size Rule
Author:  Robert McLister <rmclister@freewwweb.com> at Internet 
Date:    7/18/98 2:26 PM
     
     
Dear SEC Representative,
     
I am an individual investor with no affiliations to any interest groups 
whatsoever.  
     
As an individual investor I was disheartened to learn of the approval of 
the Actual Size Rule for all NASDAQ stocks.  From all the evidence I 
have read, including the NASD's own findings, I am convinced that the 
Actual Size Rule adds no further liquidity for investors like myself.
     
In fact, both NASD studies on the subject suggest the opposite.  To me, 
given my own investing backgroud, this is not surprising.  What 
individual would want to quote a bigger size than necessary in a market 
under duress?  No one.  But this is precisely the reason for market 
maker's existance in the first place.  To provide liquidity when the 
market needs it.
     
I have little doubt that the new Actual Size Rule will diminish market 
makers' liquidity obligation.  But for now, the SEC has spoken.
     
All I would ask is this.  If future empirical evidence suggests that the 
new Actual Size Rule decreases NASDAQ liquidity (especially in small 
equities), then I would hope that the SEC does the honorable thing, and 
meets its obligations to the investing public by amending the Actual Size 
Rule.
     
Sincerely,
     
     
Robert C. McLister